A 54-year-old man from Los Angeles County could face up to 20 years in prison after conning investors out of nearly $1.2 million by promising an ownership interest in several adult entertainment webcam websites and then using those funds to cover personal expenses and fund an exorbitant, luxurious lifestyle, federal officials announced Monday.
Prosecutors say that between Nov. 2009 and Oct. 2016, Montrose resident Patrick Khalafian solicited investments for three limited liability companies that purportedly developed and operated adult entertainment websites.
The 54-year-old claimed the victims’ investments would be used for operating the business, developing software, paying for computer servers, hiring employees and purchasing advertising.
“He also falsely promised that the victims would be repaid for their investments by a specific date, that they would receive ownership interests in the companies, and would receive a share of the companies’ profits,” a news release from the U.S. Attorney’s Central District of California Office stated.
At a July 2015 meeting at Maestro’s Steakhouse in Beverly Hills, Khalafian secured a $1 million investment from one of his victims.
On the same day that the funds were wired to an account he controlled, prosecutors say the 54-year-old withdrew $200,000 to pay for his rent and lease luxury cars. A day later, he used $60,000 of the victim’s money to purchase a new Ford F-150 truck.
Later, Khalafian used $100,000 to pay back another investor, fund a lavish trip to a casino and a shopping spree at high-end retailers, including Tiffany’s, Barney’s, Fendi, Saks Fifth Avenue and Louis Vuitton.
Two other victims, one in 2015 and another in 2016 were conned out of $80,000 and $90,000, bringing Khalafian’s fraud losses to at least $1.17 million, prosecutors said.
None of the victims were ever paid back and by Oct. 2016, the 54-year-old had changed his phone number and email address to evade their inquiries.
The 54-year-old, who pleaded guilty to one count of wire fraud, is scheduled to be sentenced in Feb. 2025, at which time he could face a maximum sentence of 20 years in federal prison, officials said.
